Disney slides after missing on revenue and ending its streaming agreement with Netflix

Disney on Tuesday reported mixed second-quarter results and some big news on its content.

Second-quarter profits topped analysts’ forecasts but revenues missed expectations. Disney said it earned $14.24 billion in revenue, less than the expected $14.42 billion, according to Bloomberg. Disney earned $1.58 per share on an adjusted basis, topping the forecast for $1.55.

Disney also announced that it would end its agreement to release new movies for streaming on Netflix, starting with 2019 titles.

Disney plans to launch an ESPN-branded streaming service for sports content in early 2018, and a Disney-branded service in 2019. To facilitate these, Disney is investing $1.58 billion to raise its stake in BAMTech, a video-streaming company, giving it majority ownership.

Netflix shares fell nearly 4% after-hours following the news.

Revenues from Disney’s cable networks fell 3% to $4.1 billion, dragged by a continued decline at ESPN. Studio entertainment revenues were also lower year-on-year due to the weaker performance of Disney’s movies. Sales at Disney’s theme parks were stronger, boosted by the timing of the Easter holiday in the current quarter.